Overtime, holidays, additional, seniority and rotating shifts would be exempted from Earnings while the partner will be deducted
The president of the ruling block of deputies, Sergio Massa, seems determined to keep tax activism high.
Now put under his wing the project of the deputy unionist Facundo Moyano to exempt overtime from Income Tax among other items.
The deputies Massa and Moyano met yesterday and the union representative was able to present his project, to which he continues to add Benefits, according to legislative sources.
Massa assured Moyano that he is willing to listen to proposals.
The son of trucker leader Hugo Moyano will present at the next hours the project to exempt overtime and other components of wages from Income Tax.
According to the latest version, Moyano’s project will include the following exemptions:
-Non-working days worked.
-Additional for productivity, efficiency, zone and uprooting.
-Additional for painful, dangerous or unhealthy jobs.
-Legal or conventional indemnities.
Meanwhile, on the deductions In the Income Tax, Moyano’s project foresees the following changes:
-The figure of concubine is added to the family charges.
-Double deduction for single parent households.
-Double deduction for taxpayers with disabilities.
-Up to $ 60,000 refund for burials.
-It also increases substantially for mortgage loans.
Deputy Moyano continues to add exemptions and deductions to his project
The above measures
Moyano’s project takes up initiatives of the 2017 dipusindicalista and complements them to draft a new project that takes into account the changes in Earnings that have occurred since then.
Specific, a 2017 law changed the treatment of overtime as follows:
1. In the case of overtime in non-business days, holidays and weekends, the difference between the value of the overtime and the value of a normal hour is exempt from paying Income Tax.
Serving exempt it’s just him surcharge that is applied to a normal hour to arrive at the value of the overtime according to the labor legislation and the applicable collective agreements.
2. Regarding overtime taxed for the tax, are not considered when determining the aliquot that corresponds to apply to taxable income.
This implies that For the purposes of establishing which section of the tax rate scale corresponds to apply, the overtime subject to the tax is not counted.
The effect of this provision is that the situation does not occur in which an employee, by working overtime and increasing his taxed income, results in receiving a lower net amount than he would have received without working overtime.
The Moyano project adds benefits to a Massa project so that 14% of workers stop paying Income Tax, which has the following characteristics:
-The income tax floor of workers in dependency ratio is raised to $ 150,000, especially benefiting singles.
-The bonus will not be added to the amount to reach $ 150,000.
-This value of $ 150,000 will be updated annually with the annual variation of the Average Taxable Compensation of Stable Workers (RIPTE.
-The project was negotiated with the AFIP, the Ministry of Economy, the Chief of Staff and the bloc headed by Máximo Kirchner.
-The initiative is expected to become law as soon as the ordinary sessions of Congress begin, that is, as of March 1.
-The mechanism to remove 1,267,000 workers and retirees from the orbit of the Income Tax does not touch the base of the tax but one of the components of the Non-Taxable Minimum, which is called “special deduction.”
-In particular, the special deduction must be increased as much as necessary so that no one who charges less than $ 150,000 pays the Income Tax.
-It is estimated that the project will cost the State a tax loss of $ 40,000 million, which will be paid by the companies with a rise of 25% that they should have started to pay this year at an effective rate of almost 40%.
-The text includes a power to the Executive Branch to increase the deductions for those who receive between $ 150,000 and $ 173,000, which will allow them to pay less than Earnings.
-It also establishes a floor for retirements, which will only pay the tax when they exceed the eight minimum guaranteed assets, currently $ 152,280.
-Ratify that the multiple for the special deduction for freelancers will be 1.5, in the case of new entrepreneurs or new professionals. But it doesn’t give them any improvement
In summary, Only 10% of taxpayers with higher income, privileged retirements and many self-employed professionals will pay the Income Taxs.